Back to top

Image: Bigstock

Why Is Equifax (EFX) Down 10.6% Since Last Earnings Report?

Read MoreHide Full Article

A month has gone by since the last earnings report for Equifax (EFX - Free Report) . Shares have lost about 10.6% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Equifax due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Equifax, Inc. before we dive into how investors and analysts have reacted as of late.

Equifax Beats on Q3 Earnings

Equifax has reported impressive third-quarter 2025 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.

EFX’s adjusted earnings were $2.04 per share, outpacing the Zacks Consensus Estimate by 5.7% and increasing 10.3% from the year-ago quarter. Total revenues of $1.5 billion surpassed the consensus estimate by 1.5% and grew 7.2% on a year-over-year basis.

Segmental Level Information For EFX

Revenues in the Workforce Solutions segment totaled $649.4 million, increasing 5% from the year-ago quarter and surpassing our estimate of $641.7 million. Within the segment, Verification Services’ revenues were $553.6 million, up 5% from the year-ago quarter. Employer Services’ revenues of $95.8 million rose 1% on a year-over-year basis.

The USIS segment’s revenues were $530.2 million, rising 11% from the year-ago quarter and beating our estimated $509.6 million. Within the segment, Online Information Solutions’ revenues were $467.5 million, up 12% year over year. Financial Marketing Services’ revenues were $62.7 million, increasing 9% from the year-ago quarter.

Revenues in the International division amounted to $365.5 million, up 6% and 7% year over year on a reported and local-currency basis, respectively. The metric missed our projection of $368.6 million.

Latin America’s revenues of $102.1 million hiked 6% from the year-ago quarter on a reported basis and 9% on a local-currency basis. Revenues from Europe amounted to $102.3 million, up 8% year over year on a reported and 4% on a local-currency basis. Revenues from the Asia Pacific were $90.1 million, increasing 2% from the year-ago quarter on a reported basis and 4% on a local-currency basis. Canada’s revenues of $70.8 million rose 9% from the year-ago quarter on a reported basis and 11% on a local-currency basis.

Equifax’s Operating Results

Adjusted EBITDA in the third quarter of 2025 amounted to $504.8 million, implying a 7% increase on a year-over-year basis. The adjusted EBITDA margin was 32.7%, flat with the year-ago quarter.

Workforce Solutions’ adjusted EBITDA margin was 51.2% compared with 51.6% in the year-ago quarter. The adjusted EBITDA margin for the USIS division was 35.2% compared with 33.9% in the third quarter of 2024. The adjusted EBITDA margin for the international segment was 31.3% in comparison with 27.7% in the year-ago quarter.

EFX’s Balance Sheet & Cash Flow

Equifax exited the third quarter with cash and cash equivalents of $189 million compared with $195.2 million at the end of the second quarter of 2025. The company has a long-term debt of $4.1 billion compared with $4.3 billion in the preceding quarter.

Cash generated from operating activities amounted to $559.9 million, whereas capital expenditure totaled $122 million. The company distributed $61.5 million as dividends in the quarter.

Equifax's Q4 and 2025 Outlook

For the fourth quarter of 2025, the company expects revenues to $1.506-$1.536 billion. EFX anticipates an adjusted EPS of $1.98-$2.08.

For 2025, Equifax has raised its revenue guidance to $6.03-$6.06 billion from the preceding quarter’s view of $5.97-$6.04 billion. The company hiked its adjusted EPS to $7.55-$7.65 from the preceding quarter’s view of $7.33-$7.63.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates.

VGM Scores

Currently, Equifax has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Following the exact same course, the stock has a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Equifax has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Equifax, Inc. (EFX) - free report >>

Published in